Part of the problem I had before was that I’d never done anything with my 401k, just let my employer take money out of my paycheck and put it in whatever fund they wanted to. After yesterday I diversified my elections and am now putting my money in bonds, stocks and mutual funds.

Has anyone else done anything with their 401k in light of recent events?

Update: The Dow closed down 500 points today…

Being a contract employee means not getting certain perks (thankfully I have health insurance via Rachel’s work), and alas when you’re in a situation like mine it means taking a pay cut from what you’re used to just to get a paycheck at all. I get a decent wage for what I do, but it’s nowhere near the average household income for this city. If it weren’t for my girlfriend, I couldn’t even afford to pay the rent!

To make matters worse, I recently sat down and analyzed my financial situation. Things are going well save for one major problem: my credit card debt keeps going up and up. I won’t say how far in debt I am suffice to say it’s around the national average. For the longest time I didn’t even know how it’d gotten so high. I know I’ve bought lots of toys for myself, and the higher cost of living in southern California certainly hasn’t helped the balance. But after doing the math I’ve discovered that in the last year alone I’ve been charged over $1000 in interest. If I were to pay only the minimum due on the card every month I figure it would take about 39.7 years to pay off my balance in full; to cut that down to a more reasonable 5 years I would need to not rack up any more charges AND pay an amount equal to that of my monthly car payment. That means I’d need close to a $5000 raise just to meet that mark and maintain my lifestyle.

Now before you start giving me tips on saving money, keep in mind that I already don’t go to the bar or out to dinner unless it’s a special occasion and haven’t even been to the zoo since I moved here because I can’t afford to. I’ve grown accustomed to the cardboard-like taste of microwaveable food, and there’s a whole shelf in the pantry dedicated to Ramen noodles and tuna fish.

I know my situation isn’t any different than that of millions of other Americans, but I wish it weren’t so. I know I need to go back to school and figure out what I want to do with my life, but I hate that my primary motivation for doing so is money. What happened to the days when people worked to pay for the things they want (like a house, a car, or a Hawaiian vacation) rather than the things they need (like food and a roof over your head)?

I feel good knowing that my car is worth more today than what I paid for it over 2 years ago :)

I just did the math using one of the handy financial calculators at Bankrate.com, and it looks like at the rate I’m going I’ll be able to pay off my credit card debt in approximately 3 years. That doesn’t sound so bad, but it feels so far away, in addition to being based on ideal circumstances (like never buying anything on credit ever again). Looks like I’ll have to hit up Potawatomi sometime soon :>

Which brings me to the usual I’m-poor-and-thus-can’t-afford-to-have-a-life rant. John and I have spent a few days talking about our jobs, and why we don’t get paid enough. As it is, the yearly hosting fee for this very website is due today, but won’t get paid until at least next week. For the impending “site not available” messages, I DO apologize.

Not having any money has certainly put a damper on my social life, but it’s giving me time to relax and reflect on life. I’ve got a stack of books I should start reading; I’ve started working out on a daily basis (and yes John, I will eventually buy a damn bike so quit whining about it!). I really wanted to go to the museum today, but have been informed that it’s not free (unless you go on Mondays, which I usually spend at work). Maybe I’ll shell out the $3.00 and go on a brewery tour — at least that way I’ll get a few drinks out of it.

Update: I did go on that brewery tour after all, over at Lakefront. Ah, there’s nothing quite like getting hammered at 3 o’clock on a Wednesday afternoon :) I highly recommend it!